The best performing market of 2025, and why is no-one talking about it?

How would you like to have yet another reason why you can benefit from knowledge of the history of the 18.6-year Real estate Cycle?

I know you’re dying to ask me!

It’s because I’ve decided to write to you this week about a subject I rarely cover with you.

A classic case of reading the tea leaves of major geo-political machinations.

Because the article headline below is “exactly” what I’d expect to read today. In fact, I knew this was coming for at least 5 years now.

And here is the good news. You can indeed take full advantage yourself financially by this seismic shift.

Let’s look now just why emerging markets are outperforming their developed world equivalents. How is it possible I could have expected this 60 months ago and what does the history of the cycle tell me about what happens next?

And of course, there is a way you can play this trend yourself. Let’s get into it!

First, we must look closely and understand just what’s occurring here with emerging markets and why they have done so well.

From the above article.

Currencies, stocks, and bonds in developing countries are defying US President Donald Trump’s trade war and the conflict in the Middle East to outperform global markets in 2025, after years in the shadow of a strong dollar.

A JPMorgan index of the local currency bonds of large emerging markets and an MSCI gauge of their shares have each gained about 10 per cent this year. In comparison, the MSCI World index, covering large stocks across 23 developed economies, is up 4.8 per cent, while the FTSE World Government Bond index is up 6.6 per cent.

Certainly, one trend that started when Trump came into power again and unleashed his Liberation Day round of tariffs has been one of global funds moving away from the erratic nature of Trump economics and into other markets.

Even this year investors have still pulled about $22bn net out of emerging markets shares and bond funds overall, according to JPMorgan data. That largely reflects sums withdrawn in April, at the peak of concerns over the impact of US tariffs on global growth. However, a net $11bn came back in during May and June.

And it makes sense given the lower valuations and offering strong yields above decade-high inflation. Then you consider the recent unrest in the middle east.

Whilst the developed world equity markets have seen falls, emerging markets have mostly held the gains they have made over the past few years in spite of the conflict.

Then there are interest rates in these emerging markets. Whilst the US Fed stubbornly refuses to buckle to the pressure from the Trump administration to cut US rates, when adjusted for inflation a lot of emerging markets bonds are at decade highs.

This has been further boosted by a now falling US dollar.

After taking much longer than I anticipated, the $DXY US dollar index finally broke below 100 points earlier this year. As of now, should the trend continue the price is about to hit its lowest level since 2022.

More about this in a moment.

But what this has done of course has boosted the value of other emerging markets floating currencies relative to the USD. It also means that emerging market currencies maintain their purchase price parity relative to the USD and their respective central banks are less inclined to raise rates.

In fact, it gives them more scope to drop rates lower.

This makes their bond and debt markets more attractive to global equity and capital.

Suddenly, you can see just how interconnected this all becomes.

George Efstathopoulos, multi-asset portfolio manager at Fidelity International, said that “for the first time, I am not selling the rally in China. It’s challenging the US from an innovation perspective, from an equity market perspective.”

He added that almost 5 per cent of his portfolio was in Brazilian bonds. He was also bullish on Korea: “it has been very very cheap for a long time,” he said, adding that “we’ve got policy uncertainty behind us, we’re seeing bold measures coming through.”

Seems to me like a trend that is only getting stronger as time moves on. But how could I have known this would occur years ago?

Once again, knowledge of the real estate cycle can prove very lucrative for you. Often, the real historic repeats you expect to happen as the cycle turns does happen, you just need to be patient and wait.

One of those historic repeats is how both the US dollar and emerging markets behave once the 2^nd more speculative half of an 18.6-year Real Estate Cycle begins.

Let’s break it down simply here. As the cycle progresses, the underlying US economy slowly gets worse and slows down, productive activity stalls under the twin burdens of high costs of borrowing and exorbitant land prices.

We can then expect the USD to begin to fall. This helps US exports but also provides a strong tailwind for emerging markets and those that are traditional commodity export nations.

It also helps explain why, if we wish to be accurate, we ‘should’ call this the 18.6-year economic cycle instead. But I digress.

It is a macro event that keeps occurring over and over again, and within the confines of the real estate cycle, at roughly the same time each cycle too. So, yes – you can be ready in advance for this to manifest.

Which means there are ways to benefit from a little knowledge applied at the right time. Today, there are many listed ETFs that provide broad exposure to many different aspects of emerging markets, from bonds to equities and debt markets.

You can then place them on your watchlist and use some technical skills to identify when the right moment to enter may present.

Above is a daily price chart for the VanEck Multifactor Emerging Market Equities (ASX – $EMKT). You can see it is now starting to break out higher.

Here is BlackRock’s MSCI Emerging Markets ETF (ASX – $IEM). Similar set-up, similar price movement. Again, it costs you nothing to watch. The key is to know “when” to watch. And my point to you today is you can know when.

It’s knowledge of the 18.6-year Real Estate Cycle. It explains to you why these things happen and repeat, over and over again.

There are so many further layers we could peel back here, but unless it’s something you have the capacity and time to invest in, you don’t really need to. Simply let history be your guide.

This emerging market trend is just beginning. But were you even aware of it? Do you possess the requisite skills to read and interpret a stock price chart to identify the correct entry and exit points?

Most important of all, how does the upcoming peak of the US land market affect this trend, both from a practical and historical perspective? You can have the answers, by simply becoming our latest Boom Bust Bulletin (BBB) member.

Let the BBB guide you on the inherent timing of the economy only knowledge of the land market can give you.

Each month this history and knowledge will be yours via monthly written editions and video postcards that will help explain the real estate cycle like never before.

At the end of the day, no matter how you position yourself to potentially benefit from the markets, no single tool is more important to it – than timing.

This is why the real estate cycle is the most important cycle on earth. Because it gives you that same timing.

I’ve written to you today about one benefit such knowledge can provide. Knowing ahead of time, should history repeat, the best opportunities to profit from will be. Are there others besides emerging markets? Yes.

You just need a little bit of history and timing behind you. And this is what the BBB is designed to teach you. But be quick.

That same knowledge tells me the peak is approaching fast, with many financial dangers ahead. The window remains open – but for how long?

Study the land market and find out.

Sign up now.